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Sustainable Production and Distribution of Bioenergy for the Central USA
Agro-ecosystem Approach to Sustainable Biofuels Production via the Pyrolysis-Biochar
Platform (USDA-NIFA AFRI CAP) • Grant no. 2011-68005-30411
Switchgrass Cost of
Production
Marty Schmer
Agroecosystem Management Research Unit
USDA-ARS
Presentation outline
• Introduction
• Previous research on switchgrass
production costs
• Factors affecting feedstock costs
• Current production costs
• Take home lessons
Switchgrass: An energy crop for
marginal lands
• EPA predicts 2.8 million
acres will be in switchgrass
by 2022.
• Switchgrass used in a
rotational system.
• Provide ecosystem
services.
• Positive energy flow.
Three main questions with cellulosic
bioenergy
Northern Plains On-Farm
Switchgrass Field Scale Trials
• Cooperating farmers were identified via assistance from USDA-NRCS state and district offices and University Extension Service staff.
• Fields were chosen based on characteristics for enrollment in CRP.
• Trial initiated in 2000 (2000-2005).
• Two farmers had previous experience growing switchgrass.
•USDA-ARS provided
seed of adapted cultivar.
•Fields were planted for
Nebraska farmers, others
used available drills.
•Harvest dates were either at heading or after a killing frost.
Field Management
• Each farmer was provided with written instructions which
included:
– Field preparation
– Planting
– Weed control
– Fertilization
– Harvest timing
• No penalties for not following instructions which
converted them into guidelines.
Establishment Year
• No-till establishment was
used where feasible.
• Pre-emergence herbicide
application.
• In NE in 2000, only
atrazine was available.
• In 2001, research data for
the use of Paramount
herbicide (quinclorac)
was available.
Fertilization
• Recommended rate was 20 lbs N per DT of
biomass based on results of Vogel et al., 2004,
Agronomy J. 94:413-420.
• Rates recommended for use changed based on
previous year and current year precipitation.
Rates actually used by farmers varied from
recommendations.
• No P or K applications
Farm scale production cost of
switchgrass for biomass
• Perrin et al., 2008
BioEnergy Research
• On-average, farm gate
costs (5 yr) were $60 ton-1
($0.68 per gallon of
ethanol delivered).
• Extrapolated farm gate
costs (10 yr) were $54
ton-1.
Switchgrass field in NE South
Dakota. Field shown had a five
year cumulative average cost of
$35/U.S. ton including land
costs.
Producer Experience
$0
$20
$40
$60
$80
Without Land Rate With Land Rate
Cu
mu
lati
ve
Pro
du
cti
on
Co
sts
$ t
on
-1
Experience
No experience
Establishment year harvest
$0
$20
$40
$60
$80
Without Land
Rate
With Land Rate
Cu
mu
lati
ve P
rod
ucti
on
Co
sts
$ t
on-1
Estab. Year Harvest
No Estab. Year Harvest
Weed Control
$0
$20
$40
$60
$80
Without Land
Rate
With Land
Rate
Cu
mu
lati
ve P
ro
du
cti
on
Co
sts
$ t
on
-1
Quinclorac
No Quinclorac
Production costs per ton over time
Conclusions from the on-farm trial
• Highest costs are in the establishment year.
• Establishment year harvest lowers overall costs.
• Effective weed control in the establishment year
is essential.
• Stand duration.
• Proper management is critical (experience
matters).
• High yielding sites had lowest costs per ton.
Current production costs
• Biomass supply schedules for Great Plains
delivery points (2012) Perrin et al.,Biomass and
Bioenergy.
• Updated feedstock costs for switchgrass in
Nebraska.
• Major differences between the two studies.
– Custom rates prices have increased.
– Land rental costs have increased.
Current production costs
• Switchgrass farm gate cost estimates are
$64/ton.
• Delivered costs were ≥ $73/ton.
– Amortized over 10 years.
– Analysis assumed 3 tons/acre yield
production.
– 25% of total costs are fixed.
Current production costs
Establishment ($/acre)
Operation Perrin et al. 2012 Adjusted rent
Tillage $ 22.00
Seed $ 60.00
Herbicides $ 43.00
Land Rent $ 55.00 $79 to $165
Reseeding $ 45.00
Total $225.00 $250 to $335
Current production costs Post-establishment ($/acre)
Operation 3 ton/acre 6 ton/acre 9 ton/acre
Fertilizer $30.00 $ 30.00 $ 30.00
Swath harvest $12.00 $ 15.00 $ 15.00
Baling $53.00 $108.00 $160.00
Bale transport $ 9.00 $ 18.00 $ 26.00
Loading $ 5.00 $ 10.00 $ 15.00
Land Rent $55 to $165 $55 to $165 $55 to $165
Annualized
estab. (10-yr)
$34 to $50 $34 to $50 $34 to $50
Total $ per acre $198 to $324 $267 to $393 $335 to $461
Total $ per ton $66 to $108 $45 to $66 $37 to $51
Current production costs
• Primary costs
– Land rental costs
– Baling
– Establishment costs
• Doubling of fertilizer price?
– Increases farmgate cost by $3 to $10 per ton
• Transportation costs to biorefinery
– Adds $3 to $5 per ton
Switchgrass market price
• Market price has not been determined.
• Hay prices as a possible indicator.
• Contract
– 5 yr contract
– 10 yr contract
• Dependent on:
– Region
– Conversion efficiency and cost
– Feedstock availability
– Business models
• Other incentives
– BCAP
– Price on carbon
Farmer participation
• Profitability
• How will switchgrass fit in their farming enterprise?
– Crop diversification
– Wildlife habitat
– Soil improvements
• Rural improvement
• Time management
Feedstock costs and availability
• Agricultural residues are expected to have lower initial costs than dedicated energy crops.
• Dedicated energy crops will become more important as the cellulosic industry matures.
– Provide higher yields with lower energy inputs.
– Reduce risks in feedstock availability.
– High yielding switchgrass is similar to residue harvest costs ($37-$51 per ton)
Take Home Lessons
• Herbaceous energy crops such as
switchgrass will be a new crop and there
will be learning curve.
• Farmer education and training will be
critical.
• Economic production efficiency can be
improved via research and producer
training.
Take Home Lessons
• Establishment Year – Economically Critical
– Weed Control
– Use high quality seed
– No-till establishment
– Previous crop
• Cultivar selection
– Next generation varieties
References
• Perrin et al., Switchgrass cost of production: data from on-farm
trials, 2000-2005 available at
http://digitalcommons.unl.edu/ageconfacpub/37/
• Perrin et al., 2012. Biomass supply schedules for Great Plains
delivery points Biomass and Bioenergy.
Thank You
Marty Schmer
USDA-ARS
Agroecosystem Management Research Unit
Lincoln, NE